Manchester United's summer transfer window is expected to be their busiest for some time. Last season, after failing to qualify for Europe, the Reds operated with a much smaller playing squad. This was both out of necessity and Ruben Amorim's personal preference. Without Champions League income, United could not afford to splurge on player wages.
Likewise, a bloated squad would have led to unrest in the camp. However, with the Reds finishing third last season, they have returned to the Champions League and with at least eight extra matches added to the calendar, reinforcements are definitely needed.
Despite being one of the richest clubs in world football, United cannot afford to splash the cash recklessly to improve their squad. They must adhere to financial and squad rules as they aim to bolster their team. With this in mind, MEN Sport has taken a look at the five rules impacting United's business this summer.
Brexit
Those not wanting to relive the Brexit conversation may want to skip ahead but Britain's decision to leave the European Union still impacts on United's transfer business. Previously, Premier League clubs could sign players from Europe freely and without a need for a work permit.
However, players from Europe - whether they be established stars or talented academy players - must now obtain a Governing Body Endorsement (GBE). This is a points-based system with players needing to obtain at least 15 points to gain a GBE. GBE's are obtained based on the following criteria:
- Senior and youth international appearances
- Quality of the selling club, based on the league they are in, league position and progression in continental competition
- Club appearances, based on domestic league and continental competition minutes
Brexit also impacts the U21 overseas players a club can sign. A Premier League team can only sign six overseas U21 players per season.
Premier League clubs are also unable to sign overseas players until they are 18. This is why Diego Leon had to wait until his 18th birthday before joining the Reds.
Home grown quotas
Both in the Premier League and UEFA competitions, United must abide by 'Home Grown' player rules. In the Premier League, 'Home Grown' players are those who, irrespective of nationality or age, have been registered with any club affiliated to The Football Association (FA) or the Football Association of Wales (FAW) for a period, continuous or not, of three entire seasons, or 36 months, before his 21st birthday (or the end of the season during which he turns 21).
Last season, Rhys Bennett, Amad, Tom Heaton, Harry Maguire, Dermot Mee, Mason Mount and Luke Shaw all constituted as 'Home Grown' players. Each club's squad must contain no more than 17 players who do not fulfill this quota.
In UEFA's competitions, their rules are slightly more complicated. Clubs must submit a List A and List B to UEFA before competing in the Champions League.
List A can have no more than 25 players. Eight of these places are reserved for 'locally trained players'. No more than four of those eight players can be 'association trained players'.
This means they have been trained by a club, between the ages of 15 and 21, irrespective of nationality, for three entire seasons, that belongs to the same association as them. The other four places must be given to 'club trained players'.
The same rules apply, only they have to be trained by United rather than any club from the FA. If a club has fewer than eight locally trained players on its List A, the maximum number of players that can be registered on this list is reduced accordingly.
List B can be made up of an unlimited number of players so long as they were born on or after January 1, 2005 and have been eligible to play for the club for a two-year uninterrupted period since they were 15. Or, three years, if one of those years was spent on loan at a club in the same association.
Premier League financial rule change
From next season, the rules surrounding finances will change for United in the Premier League. Having previously operated in the Profit and Sustainability Rules (PSR) framework, the Premier League has now changed to the Squad Cost Ratio (SCR) model.
SCR means Premier League clubs' on-pitch spending is limited to 85 per cent of their football-related revenue and net profit/loss from player sales. Squad costs cover player and head coach wages, agents' fees and amortisation or impairment of transfer fees.
Amortisation is the means of spreading a transfer fee over the length of a player's contract. While impairment, in this context means lowering the value of a player's registration because it is less than what was originally paid for them due to a range of factors, such as injury, performance or relegation.
This is meant to simplify the Financial Fair Play (FFP) process for clubs who drop in and out of Europe. While the Premier League now mirrors UEFA's rules, there are some subtle differences.
UEFA's SCR
Instead of 85 per cent, UEFA limits on-pitch spending to 70 per cent. As such, United must adapt their budgets to 70 per cent rather than 85.
While that may seem like United are at a disadvantage, their revenue will be a lot higher than their Premier League counterparts thanks to playing in the Champions League. In theory, the Reds should be able to spend more than those outside Europe because of this.
SCR will focus solely on United's on-pitch spending rather than taking into account other factors like PSR did. The hope is that clubs will now be able to spend more freely on off-field improvements without fear of being punished by FFP.
Another important difference is that the Premier League's SCR will run on a seasonal basis while UEFA's runs on a year-by-year basis so United must plan their spending by the calendar year, rather than by season-to-season.
